Selling unwanted gold can be a fast way of making some extra cash, but it’s not always easy to find the best price. Many specialist cash-for-gold businesses choose from, but they may not offer the best price for you. It may take more time to sell gold to a high street jeweler or through an online trading website such as eBay, but you’re likely to be offered more money. To ensure that you get the best deal when selling gold jewelry, take a look at these tips.
1. Be aware of the reasons for fluctuations in gold prices
The price of gold is prejudiced by supply and demand. High demand and lower quantities indicate a higher return for the seller. Remember, there is only so much gold globally, so gold production levels will continue to decline as time marches on. Market conditions can also influence gold prices.
2. Take the time to go shopping for quotes around
To understand what you can expect to receive for your gold, check what the LBMA has to say about gold’s value. The gold standard for the gold market is set by the London Bullion Market Association or LBMA. Twice a day, prices are set.
The third-party committee, the IBA (ICE Benchmark Institution), created the process to set the gold benchmark and is working with the LBMA to distribute the price of gold to investors around the world in real-time. Before setting out to sell your goods, you may want to review global pricing to know your gold value.
Once you have the data, shop around to see who will give you a fair offer for selling to different buyers. In places like Yelp or the Better Business Bureau, it is also a good idea to research your prospective buyer’s reputation to avoid possible scams or other negative experiences.
3. Know what to sell you have
Another of the best tips for selling gold is to know what you have so that the person or company trying to buy it from you can determine a fair offer.
On your gold pieces, you can try a strong magnet. Your gold, if it is magnetic, is either imitation gold or lower quality gold. Among other purity grades, gold jewelry is 10k, 14k, 18k, and 24k gold. A higher number means pure gold, and lower numbers indicate that other metals such as copper, zinc, or nickel have a higher content. Keep in mind that only those parts that are pure gold will ever be paid for.
You can also want to consider getting an assessment for antiques or heirloom pieces because compared to weighted value, they may be worth more at appraisal value. At the same time, understand that the actual value is not increased by sentimental value, so it is best to have a professional recommendation to sell by weight or assessment.
4. Know what counts in the weight of Karat
The difference between troy ounces, grams and how karats relate to both will be known to investors. Educating yourself on these conversion rates, too, would be a good idea. In weight, a troy ounce is equal to 31.1 grams.
We already know that different gold-stamped karat ratings indicate different purity levels, but how does that translate to karats and grams? 24k is considered pure gold, so 1/24 of a piece of gold equals a single karat. 18k is gold with 18/24 parts, 12k is gold with 12/24 parts, etc.
5. Gold Separate and Organize
You can separate it by karat as soon as you determine the various purities stamped on your gold. In calculating grams of pure gold and troy ounces, doing so is particularly useful. Also, separate anything with gemstones because it will affect the total weight and cause a different type of calculation depending on the gem’s type and size. Do not forget to pull out any pieces that are also stamped as gold-plated and gold-filled jewelry with a GP or GF, as it is not worth much from an investor’s perspective.
Another of the most important tips for selling gold is to organize your items beforehand because you will be able to ensure better prices for yourself and avoid manipulative tactics that pawnshops or dealers sometimes use.
6. Impulse in Your Pocket equals less cash
Once you decide to search for a gold dealer or buyer, after being educated and informed about what to expect, do so. Just because you want some extra cash, do not sell your gold. If you sell on impulse, if you have done your research to get the best deal available, you will probably end up with a lower deal than you would have had. To compare with the industry price, your chosen dealer should be able to tell you what your gold offer is per ounce or gram. If they give you a fuzzy or vague answer, steer clear of that buyer and take your gold elsewhere.
7. Document All and Read Buyer Policies
You will come across various businesses locally and online when researching to see where you will get the best offer for your gold.
To cover yourself and your gold, once your choice has been made, be sure to document everything. If you have to ship it or need to leave it somewhere overnight, take pictures of the gold. Make sure you send it with a return receipt and a tracking number if you ship your gold.
Do Your Research Above All
The bottom line is that you need to do your research and go into price, weight, and purity with current information. Once you have all the data you require, study the gold fluctuations, get multiple quotes, and make an informed decision.
Being aware of the industry’s standards will clear the way for your expectations to be realistic and ensure that you acknowledge an unfair offer versus a fair offer. You can go out and sell your gold with confidence when you’re ready, understanding that you are well-informed and can otherwise spot someone trying to take advantage of you.